SBI 5-year FD vs SCSS: Which will give higher return on Rs 15 lakh investment for 5 years; understand through calculations
SBI 5-Year FD vs SCSS: A Rs 15 Lakh investment over 5 years presents two popular options—SBI Fixed Deposit (FD) and Senior Citizen Savings Scheme (SCSS). SBI FDs offer interest rates up to 7.50% for senior citizens, while SCSS provides government-backed security with quarterly interest payouts. SCSS typically delivers higher returns, making it a top choice for retirees. However, SBI FDs offer more flexibility with loans against deposits and auto-renewal options. Know which one is more suitable for you.
SBI 5-Year FD vs SCSS: When comparing SBI’s 5-year Fixed Deposit (FD) and the Senior Citizen Savings Scheme (SCSS) for a Rs 15 lakh investment, understanding their returns and features is essential. SBI FDs offer up to 7.50% interest for senior citizens, with flexible features like loans against deposits. SCSS offers higher returns with quarterly interest payouts, providing a reliable income stream. This article breaks down the returns and benefits of both options, helping you decide the best investment choice for your financial goals.
SBI 5-Year FD: Key Features & Benefits
Interest Rates:
- General citizens: 3.00% to 6.50%
- Senior citizens: 4.00% to 7.50%
- Latest offering: 7.25% for 444-day deposits
Minimum & Maximum Deposit:
- Minimum: Rs 1,000
- No limit on the maximum deposit
Additional Features:
- Senior citizens enjoy an extra 0.50% interest rate.
- Nomination and auto-renewal facilities are available.
- Loan against FD is allowed, providing liquidity.
- TDS is deducted if Form 15G/15H is not submitted.
Return on Rs 15 Lakh Investment for 5 Years:
- Total returns: Rs 5,70,630
- Maturity value: Rs 20,70,630
Senior Citizen Savings Scheme (SCSS): Key Features & Benefits
Interest Rate:
Rates are revised quarterly by the government but stay fixed throughout the tenure once locked in.
Minimum & Maximum Deposit:
Minimum & Maximum Deposit:
- Minimum: Rs 1,000
- Maximum: Rs 30 lakh or retirement benefit amount
Maturity Period:
The scheme runs for 5 years and can be extended for an additional 3 years.
Premature Withdrawal:
Allowed after 1 year with a penalty. The penalty varies based on the time of withdrawal.
Security of Capital:
Government-backed, offering high capital security.
Return on Rs 15 Lakh Investment for 5 Years:
- Total interest earned: Rs 6,15,000
- Maturity value: Rs 21,15,000
- Quarterly interest payout: Rs 30,750